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FIRSTFED REPORTS FIRST QUARTER RESULTS

 SANTA MONICA, Calif., April 20 /PRNewswire/ -- FirstFed Financial Corp. (NYSE: FED), holding company for First Federal Bank of California, today announced a net loss of $16.4 million, or $1.53 per share of common stock for the first quarter of 1993. Net earnings for the first quarter of 1992 were $6.8 million, or $0.62 per share, and net earnings for the fourth quarter of 1992 were $6.7 million, or $0.62 per share.
 As disclosed in the company's recent press release dated March 26, 1993, and in response to continued declines in the Southern California economy and real estate market, management determined that a $44.1 million loan loss provision was required at March 31, 1993. In comparison, provisions of $10.7 million and $6.7 million were recorded during the first quarter and fourth quarter of 1992, respectively.
 The general valuation allowance at March 31, 1993, was $59.5 million. This compares to $27.9 million at Dec. 31, 1992. The ratio of general loan loss allowances to total loans with loss exposure increased to 1.93 percent at March 31, 1993, from 0.57 percent at March 31, 1992, and 0.93 percent at Dec. 31, 1992.
 Loan charges-offs of $12.4 million during the first quarter of 1993 exceeded the historical estimate of $5 million. This caused management to reassess the current economic situation as it related to real estate values. Management ascertained that certain Southern California neighborhoods which had shown deterioration early in the economic recession were continuing to decline. During the first quarter these particular areas experienced a glut of multifamily properties available for sale. Consequently, various government agencies and financial institutions were selling multifamily properties at substantially lower prices. The unusually large first quarter provision is to recognize the impact on the bank's portfolio of this market decline. The $12.4 million in charge-offs during the first quarter of 1993 compares to $5.1 million and $8.9 million, in the first quarter and fourth quarter of 1992, respectively.
 Non-performing assets were $133 million, or 3.72 percent of total assets at March 31, 1993, an increase from $67.0 million, or 2.01 percent of total assets at March 31, 1992, and $90.3 million, or 2.76 percent of total assets at Dec. 31, 1992. Increases in non- performing assets were attributable to increased foreclosures and delinquencies on both single-family and multifamily loans. Depending on the length and severity of the current economic recession in Southern California, financial institutions remain vulnerable to possible further increases in non-performing assets.
 Results for the first quarter of 1992 included a $3.1 million tax benefit from the implementation of Financial Accounting Standards Board Statement of Financial Accounting Standards No. 109.
 Net interest income, the bank's primary source of core earnings, was $25.0 million for the first quarter of 1993, compared to $26.2 million for the first quarter of 1992, and $25.1 million for the fourth quarter of 1992. Growth in interest-earning assets was offset by decreased interest margins and increased non-performing assets.
 The net interest margin, the difference between the yield on earning assets and the cost of funds, was 2.75 percent for the first quarter of 1993, compared to 3.00 percent for the first quarter of 1992 and 2.84 percent for the fourth quarter of 1992. The decrease in margin results from the fact that the yield on the loan portfolio is tied to an index which is decreasing faster than the bank's cost of funds.
 Loan originations increased slightly to $186 million during the first quarter of 1993 from $184 million during the first quarter of 1992. Loan originations during the fourth quarter of 1992 were $210 million. Approximately 60 percent of new loans originated were for the purpose of refinancing existing debt.
 The bank continues to focus on the origination and retention of adjustable rate mortgages based primarily on changes in the Federal Home Loan Bank Eleventh District Cost of Funds Index. Approximately 91 percent of loans originated during the first quarter of 1993 were adjustable, and, at March 31, 1993, 97.8 percent of the loan portfolio was comprised of adjustable rate products.
 Total saving deposits increased by $16 million during the first quarter of 1993. The increase was attributable to the bank's use of brokered deposits. Additionally, borrowings under reverse repurchase agreements increased by $138 million during the first quarter. The bank securitized loans totaling $187 million into mortgage-backed securities at the end of 1992 to facilitate these borrowings which are typically the cheapest source of funds for the bank.
 Cost control remains an important priority for the bank. The ratio of non-interest expense to total assets for the first quarter of 1993 was unchanged from 1.30 percent for the fourth quarter of 1992. The ratio for the first quarter of 1992 was 1.34 percent. Federal deposit insurance expense increased by 16 percent during the first quarter of 1993, compared to the prior-year first quarter due to increases in the insurance assessment rate and in total savings deposits.
 The bank continues to exceed all regulatory capital requirements. The most stringent requirement, a risk-based capital ratio of 8 percent of risk-weighted assets, was 9.32 percent for the bank as of March 31, 1993. The tangible and core capital ratios were both 5.2 percent as of March 31, 1993.
 William S. Mortensen, chairman and chief executive officer of FirstFed, commented, "Dealing with the problems of loan delinquencies remain at the forefront of our financial management programs." He continued, "The board of directors believes that the repurchase of FirstFed stock is an excellent investment and reapproved continuing the repurchase program." Since the inception of this program the company has repurchased 796,520 shares at an average price of $12.34.
 FirstFed Financial Corp. is the holding company for First Federal Bank of California. The company has 24 full-service savings offices and eight loan offices in Southern California.
 Key financial results follow.
 FIRSTFED FINANCIAL CORP.
 Financial Summary
 Three months ended
 March 31,
 1993 1992
 Net earnings (loss) ($16,402,000) $6,774,000
 Earnings (loss)
 per share:
 Primary ($1.53) $0.62
 Fully diluted ($1.53) $0.62
 Book value
 Per share $18.33 $18.86
 Weighted average
 shares outstanding:
 Primary 10,692,084 10,932,558
 Fully diluted 10,692,656 10,932,590
 Assets $3,591,073,000 $3,327,330,000
 Loans $3,264,563,000 $3,043,032,000
 Deposits $1,999,190,000 $1,938,914,000
 Borrowings $1,339,911,000 $1,114,529,000
 Stockholders'
 equity $191,214,000 $196,632,000
 Loan originations $186,455,000 $183,853,000
 Net interest income $25,049,000 $26,197,000
 Non-performing
 assets to
 total assets 3.72 pct 2.01 pct
 Net worth to assets
 ratio 5.32 pct 5.91 pct
 Tangible capital ratio 5.18 pct 5.70 pct
 Core capital ratio 5.18 pct 5.83 pct
 Risk-based capital
 ratio 9.26 pct 9.60 pct
 Interest rate spread
 during the period 2.75 pct 3.00 pct
 Percent adjustable
 mortgages 97.80 pct 95.71 pct
 Expense ratios:
 Percent gross income 18.79 pct 15.60 pct
 Percent average assets 1.30 pct 1.34 pct
 One year "Gap" percent
 of assets 12.76 pct 9.16 pct
 Return on assets (1.86 pct) 0.82 pct
 Return on equity (32.91 pct) 14.01 pct
 FIRSTFED FINANCIAL CORP. AND SUBSIDIARY
 Consolidated Statements of Financial Condition
 (In thousands)
 March 31, Dec. 31,
 1993 1992
 (unaudited)
 Assets
 Cash and cash
 equivalents $96,000 $23,985
 U.S. Government and
 other securities,
 at cost (market of
 $64,776 and $44,059) 64,173 43,736
 Loans receivable 2,511,552 2,461,766
 Mortgage-backed
 securities (market of
 $679,014 and $706,827) 665,330 693,072
 Loans and mortgage-
 backed securities held
 for sale (market of
 $90,299 and $92,899) 87,681 91,558
 Accrued interest and
 dividends receivable 22,356 23,016
 Real estate 76,371 43,702
 Office properties and
 equipment, net 9,261 9,520
 Investment in Federal
 Home Loan Bank Stock,
 at cost 35,542 35,542
 Other assets 22,807 20,676
 Total $3,591,073 $3,446,573
 Liabilities
 Deposits $1,999,190 $1,982,745
 Federal Home Loan
 Bank advances and
 other borrowings 711,150 705,150
 Securities sold under
 agreements to
 repurchase 628,761 491,091
 Income taxes payable 6,282 17,783
 Accrued expenses and
 other liabilities 54,476 42,293
 Total 3,399,859 3,239,062
 Contingent Liabilities
 Stockholders' Equity
 Common stock, par value,
 $.01 per share;
 authorized 25,000,000
 shares; issued
 11,229,402 and
 11,180,221 shares,
 outstanding 10,432,882
 and 10,383,701 shares 112 112
 Additional capital 24,666 24,524
 Retained earnings -
 substantially
 restricted 179,296 195,698
 Loan to employee
 stock ownership plan (3,028) (2,991)
 Treasury stock, at cost,
 796,520 shares (9,832) (9,832)
 Subtotal 191,214 207,511
 Total $3,591,073 $3,446,573
 FIRSTFED FINANCIAL CORP. AND SUBSIDIARY
 Consolidated Statements of Operations
 (Unaudited)
 (In thousands)
 Three Months Ended
 March 31,
 1993 1992
 Interest income:
 Interest on loans and mortgage-
 backed securities $56,361 $66,067
 Interest and dividends on
 investments 1,886 1,917
 Total interest income 58,247 67,984
 Interest expense:
 Interest on deposits 19,168 23,467
 Interest on borrowings 14,030 18,320
 Total interest expense 33,198 41,787
 Net interest income 25,049 26,197
 Provision for loan losses 44,123 10,716
 Net interest income (loss) after
 provision for losses (19,074) 15,481
 Other income:
 Loan and other fees 1,791 1,692
 Gain on sale of loans 400 379
 Real estate operations, net 143 336
 Other operating income 384 466
 Total other income 2,718 2,873
 Non-interest expense 11,454 11,052
 Earnings (loss) before income taxes
 provision and cumulative effect
 of change in accounting principle (27,810) 7,302
 Income tax provision (benefit) (11,408) 3,603
 Earnings (loss) before cumulative
 effect of change in accounting
 principle (16,402) 3,699
 Cumulative effect of change in
 accounting principle --- 3,075
 Net earnings (loss) ($16,402) $6,774
 Earnings (loss) per share ($1.53) $0.62
 -0- 4/20/93
 /CONTACT: Martin Gottlieb, executive VP of FirstFed Financial, 310-319-6000/
 (FED)


CO: FirstFed Financial Corp.; First Federal Bank of California ST: California IN: FIN SU: ERN

BP-JL -- LA019 -- 7815 04/20/93 09:03 EDT
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